Released: 1 November 2021
Global Price Inflation Rising Fast and at 37 Month High in October
The Global Growth Index, bringing together data for the three great economic growth drivers of economic activity, shows growth and confidence clearly returning in two out of the three countries. But overall still some considerable way below previous levels of growth.
Alongside the modest but encouraging signs of global growth, comes a far less welcome indication of rapidly rising Price Inflation. The Prices Index continues to show an increasing level of inflation in all three of the worlds most significant economies, reflecting another very significant jump in prices of many kinds in October. Serious supply chain problems provide one obvious reason for the rapid price rises, and the impact of governments everywhere opening the money taps to attempt to preserve economic activity in the face of Covid, provide another.
A second negative is shown by the Staffing Index which came in at a lowly 51.2 reading, suggesting that jobs growth globally has a long way to go to return to pre Covid "normal" levels.
Having said that, the Index is now showing monthly positive readings, suggesting that the green shoots of global growth are showing more life than has been the case for some time.
As commerce starts to return to some semblance of normality over the next few months, it should become easier to judge whether the prolonged and gigantic episode of money creation has sparked a more profound period of dangerous price inflation, or price inflation subsides as the supply chain problems ease.
Global Prices Charged Index
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